2000TLondon

A mate of mine is off travelling for a year. He has a 2003 53 plate focus 1.4 LX with 19,000 miles on. A colleague has offered to hire the car from him for a year, so we've been trying to work out a fair price.

Basically the depreciation in age will be minimal, and my firend would suffer it anyway, but his colleauge has said he will put 10,000 miles on. I've estimated this will devalue the car by around £800 compared to if it was sold next year with only 19,000.

I've estimated the cost of leasing a similar car to be between £100 and £150 a month, therefore suggested my friend should be looking to ask for somewhere around £2000 to £2500 for the years use of the car. Seems a bit steep to me, but it seems accurate.

Anybody have any experience of this, or a view on my figures, please?

My mate will be signing the car over to him for the period, so will add to the number of owners, too..... He's pretty sure he'll get it back

2000TLondon

bttt

J_C

It's not worth the trouble. He'd be better off selling it and putting the money in the bank until he returns.

2000TLondon

I did suggest that, however if he can get £2000 for it for the year, then get it back still worth £4000, he'll be a grand better off than if he just banked it. Plus he'll need the car when he get's home. I do get the feeling, however, that something may / will go wrong.....

kammy

His colleague with trash the nuts of it, well not look after it, then give it back. Tyres wear, exhausts, rattles will appear.

Then again if anyone is daft enough to borrow a car for one year for £2500 go for it- leasing never works out cheaper as anyone who has studies corportate finance will tell you

Dream Weaver

Very silly idea

As kammy says, it will come back needing a good proper service, new tyres, exhaust etc etc, thats if it comes back in one piece. The £1k will soon disappear with that lot.

Sell it privately and bank the money in a high interest account.

2000TLondon

Yeah, I hear what you're saying, but he trusts the bloke, obviously, as he is signing it over to him and expecting it back, and all the perishables / servicing will be done by him..... By the figures I've come up with, I think the bloke would be daft to pay that money anyway....

hail-hail

So what happens when the engine goes pop, or the gearbox falls to bits, will the leaser pay for all this? ok so it might never happen, but it can happen. I would avoid anything to do with this. Best way to end a friendship. Sell it and bank the money.

2000TLondon

Good point that I hadn't considered...... cheers!

scooby_me

iTrader: (1)

i think without a propper contract that he would have to return the car in the mechanical condition it was given would be needed, and even then who is going to enforce this?..

i think its a VERY VERY bad idea to be even considdering this.. also what happens if he writes the car off in a FAULT accident... is he stipulating fully comp insurance for the period of lease?

its a loose loose situation from where i am sitting and the complications down the line are not worth the hastle... IT WILL COST THEM THERE FREINDSHIP at least.. and could end up costing him that AND HIS CAR!..

sell it/put it in storage (where it will keep the milage low and all parts in as new working order) take it out of storage in a year give it a full service and he will have a seriously low mileage car worth probably 1k more than that of simmilar higher mileage cars around.


DONT DO IT!

2000TLondon

Talked him out of it......... Cheers

J_C

I think that's the best move

2000TLondon

He's going to SORN it, stick it in his dad's garage, get it run once a week, i was thinking it was a good idea until the objectivity of scoobynet showed me the light!